Calculate the following for the Pulte homes project and Shea Apartment project and determine which has the best payback for

a) Simple payback

b) Discounted payback using a 12% MARR

Project Location is Aliso Viejo, California Project description This project was developed on an 8 acres site and has 435 luxury apartments. This apartment community is located in Aliso Viejo's mixed-use development known as Vantis. The apartments are adjacent to a new Homewood Suites by Hilton hotel, retail, office and for-sale residential. The community offers a resident clubhouse, business center, fitness center, resort-style pool with cabanas, rooftop deck, and open space. Individual units feature a contemporary floor plan, wood-style plank flooring, quartz countertops, stainless appliances and high-end finishes throughout. Units floorplans range from 567 square feet for a studio to 1260 square feet for a 3 bedroom unit. The development consists of 4 floors with 559,152 gross square feet. Project is wrapped around a 6-tier, 756 space mechanically ventilated concrete framed parking structure. Exterior is plaster, metal panels, stone wood siding The cost for development of the site was $5,500,000. The preconstruction work cost was $500,000 with construction cost of $75,000,000. The project schedule had 1st turnover of units 3 months prior to final completion. Preconstruction started in October 2014 and final turnover and completion was September 2016 All costs when brought to September 2018 is an equivalent $85,932,900. Forecast net Income from sales of the apartments was spread over the next four years as shown in the table below to do a preliminary economic review for simple and discounted payback. Year 1 Year 2 Year 3 Year 4